TB MC Qu. 10-108 (Algo) Valber Company is considering eliminating... Valber Company is considering eliminating its Phone division. The company allocates fixed costs based on sales. If the Phone division is dropped, all of its variable costs are avoidable, and $170,000 of its fixed costs are avoidable. The impact on Valber's income from eliminating the Phone division is: Sales Variable costs Contribution margin Fixed costs Net income (loss) Desktops $ 416,000 221,000 195,000 Laptops $ 931,500 655,000 Tablets $ 754,000 Phones $ 995,000 548,000 815,000 276,500 206,000 180,000 91,200 194,300 158,800 215,000 103,800 82,200 47,200 (35,000)